Is Tencent Music IPO on hold?
The planned IPO of Chinese mega-company Tencent Music Entertainment Group (TMEG) caused quite a noise in the international music industry... but it seems that could all now be on ice, according to reports from the "Wall Street Journal", citing sources close to the IPO plans.
Reportedly, TMEG met with its underwriters last week and decided to postpone the IPO amid fears that any sell-off could negatively affect its pricing.
The immediate result – predictably – was that its stock value tumbled on the Dow Jones. The timeline for the IPO was supposed to involve a roadshow to investors kicking off this week, with trading to begin the following week. There is still no official confirmation from Tencent: if the IPO will be quickly rescheduled for a new date (there are suggestions it could now happen in November, assuming spooked potential investors can be placated); or if the whole plan is going to be quietly deleted.